WSJ What’s News – “Where Do AI and the Streaming Bubble Bursting Leave Hollywood?”

Date: October 12, 2025
Host: Kate Bullivant
Guests: Ben Fritz & Joe Flint (WSJ Entertainment Reporters)

Episode Overview

This episode examines the crisis facing Hollywood as the “streaming bubble” bursts and artificial intelligence (AI) begins to disrupt traditional content creation. Host Kate Bullivant speaks with WSJ entertainment reporters Ben Fritz and Joe Flint about the impact of declining U.S. film and TV production, the relocation of studios abroad, and the opportunities and threats posed by AI for creative industries. The discussion highlights economic, technological, and labor challenges, focusing on both immediate disruptions and longer-term implications for Hollywood and beyond.

Key Discussion Points and Insights

1. The Bursting of the Streaming Bubble

Timestamp: 02:09–02:58

• Ben Fritz explains that the “streaming bubble has popped,” shifting investor focus from growth (more content spending) to profits (cost-cutting).
  • Studios are cutting back especially on TV content for streaming services.
  • Big-budget movies are increasingly produced overseas (UK, Canada, Eastern Europe) to capitalize on tax breaks and cheaper labor.
  • Quote:

    “Investors a couple of years ago started to reshift and say, we don't care about growth, we care about profits.” – Ben Fritz (02:18)

2. Economic Fallout in Los Angeles

Timestamp: 02:58–03:36

• The decline in local production has heavily affected LA’s middle class—camera operators, makeup artists, animators, etc.—who “are the heart of Los Angeles middle class.”
• These workers are experiencing significant job scarcity, impacting local spending and the wider economy.
• Quote:

  “Now they're not [finding work]. There is simply not enough work for them in Los Angeles.” – Ben Fritz (03:16)

3. Policy Response: Proposed Tariffs and the Call for Tax Credits

Timestamp: 03:36–04:33

• President Trump has proposed 100% tariffs on foreign-produced films, drawing attention to the crisis.
• Fritz and others argue tariffs are unworkable for non-physical media; a more viable solution is a federal tax credit, as seen in the UK, Canada, and several U.S. states.
• Quote:

  “You can't tariff a movie because it's not a physical good that comes in through a port…what we really need is a federal tax credit.” – Ben Fritz (04:02)

4. The Rise of AI in Hollywood

Timestamp: 04:33–06:45

• The episode spotlights “Tilly Norwood,” a synthetic AI actor whose creation has stirred debate.
• AI isn’t limited to acting—it’s impacting scriptwriting and production logistics.
• Joe Flint addresses industry concerns:
  • Studios could automate script generation, threatening creative jobs.
  • AI has potential to improve efficiencies, but creatives are wary of replacement.
  • Unions (actors and writers) won protections in the 2023 strike, but sectors like animation lack such safeguards.
• Quotes:

  “Where the creative community gets upset…is the idea of being replaced by AI.” – Joe Flint (05:20)
  “People who work in areas like animation and visual effects are very afraid. They don't have unions that have protections for them…those are definitely the kind of work that AI is already starting to do.” – Ben Fritz (06:23)

5. Is Hollywood as We Know It Ending?

Timestamp: 06:45–07:45

• Fritz offers historical perspective: every disruptive technology (sound, TV, VCRs, streaming) was thought to be industry-ending, but most led to new opportunities.
• AI could both cut jobs and lower costs, enabling more independent filmmaking even if with smaller teams.
• Quote:

  “You might see fewer people working on each movie and TV show, but a lot more stuff getting made because it's cheaper to make each thing.” – Ben Fritz (07:33)

6. AI’s Impact Across the Creative Ecosystem

Timestamp: 08:20–10:33

• Music industry: AI-generated covers (e.g., “fake funk covers of ACDC”) raise copyright and compensation challenges.
• YouTube and independent creators: AI lowers barriers to entry, allowing semi-professional animators and creators to produce and distribute content outside Hollywood’s traditional system.
• Shifting job landscape: AI automates entry-level tasks (e.g., script summaries), eliminating traditional stepping-stone roles.
• Quotes:

  “I certainly enjoy those fake funk covers of ACDC songs…but I can't imagine that ACDC or their label is too happy about it.” – Joe Flint (08:34)
  “It used to be in Hollywood, one of the positions you might first start out with…was being a script reader…now you download that script into AI and get a pretty good summary.” – Joe Flint (09:54)

7. Long-term Outlook and Uncertainties

Timestamp: 10:33–12:13

• Integration of AI will be “a longer-term thing” as big studios and unions adapt slowly.
• Potential loss of entry-level creative jobs is a concern, but AI could also spark a creative boom for independent artists.
• The ultimate direction depends on both industry adaptation and consumer preferences.
• Quotes:

  “The pessimistic future is all the creative people who are trying to earn a living can't make money…The optimistic future is it makes it easier for anybody who has a creative vision to actually bring that to life.” – Ben Fritz (11:21)
  “There's going to be a lot of tension in the years ahead between the entertainment industry and the tech industry…Ultimately, the consumer decides.” – Joe Flint (11:37)

Notable Quotes & Memorable Moments

• “Streaming bubble has popped.” – Ben Fritz (02:09)
• “There is simply not enough work for them in Los Angeles.” – Ben Fritz (03:16)
• “Where the creative community gets upset…is the idea of being replaced by AI.” – Joe Flint (05:20)
• “People who work in areas like animation and visual effects are very afraid.” – Ben Fritz (06:23)
• “You might see fewer people working on each movie…but a lot more stuff getting made.” – Ben Fritz (07:33)
• “The optimistic future is…it makes it easier for anybody who has a creative vision.” – Ben Fritz (11:21)

Timestamps for Important Segments

| Segment | Timestamp | |-------------------------------------------------|------------| | The downfall of Hollywood production | 02:09–02:58| | Economic impact on LA & workers | 02:58–03:36| | President Trump’s tariff proposal | 03:36–04:33| | AI in scriptwriting and acting | 04:33–06:45| | Will Hollywood survive? | 06:45–07:45| | AI’s impact across all creative industries | 08:20–10:33| | Long-term effects of AI and the future outlook | 10:33–12:13|

Flow & Tone

The tone is urgent but measured, blending direct economic and technological commentary with glimpses of both hope (creative renaissance) and caution (job loss, labor tension). Quotes from both reporters anchor the discussion in the realities faced by both top-tier celebrities and everyday behind-the-scenes workers.

Summary

This episode paints a realistic, nuanced picture of Hollywood in flux. The convergence of a sharp industry contraction and the rise of AI is upending well-worn career paths and established business models. The conversation balances warnings about lost jobs and creative displacement with cautious optimism about expanding opportunities for independent creation and technological innovation. The episode concludes with the key reminder: The future of entertainment will largely be shaped by audience evolution and the slow march of industry adaptation.